TMG Partners Closes $220MM Separate Account for Bay Area Value-Add Investment

SAN FRANCISCO (October 29, 2019) – TMG Partners, one of the San Francisco Bay Area’s largest mixed-use property developers, announced today the closing of a $220 million separate account to invest in value-add commercial real estate in the Bay Area.  The capital was sourced from a single institutional investor and represents TMG’s second venture with this investor. 

The venture will seek to acquire approximately $625 million of value-add and opportunistic investments in the San Francisco Bay Area.  Product types will include office, R&D, residential and mixed-use. 

“This separate account follows a successful $165 million venture we formed with this investor four years ago,” said Michael Covarrubias, Chairman and CEO of TMG Partners.  “We’re grateful for the trust and confidence our capital partner continues to place in the TMG team and in our deployment of the account.” 

Investments in the first separate account included two office buildings and a development site in Oakland, and an office property in San Jose, three of which were sourced off-market.  The first Oakland investment and the San Jose property were sold over the past year following completion of renovations and signing long-term leases with a number of tenants, including Google, Oracle, Arup, Clovis Oncology and Santa Clara County. 

“The Bay Area remains the country’s most competitive real estate investment market,” said Matt Field, TMG’s President.  “This capital will allow us to continue as a market leader and respond to opportunities with remarkable speed.” 

About TMG Partners

TMG Partners, founded in 1984 and headquartered in San Francisco, is a full-service real estate development and management company. One of the most active developers in the Bay Area Region, TMG has a portfolio of more than 30 million square feet across Oakland, San Francisco, San Jose, and other Bay Area cities that includes a variety of office, retail, residential, and industrial properties, ranging from office campus and multi-story properties in urban-infill locations to mixed-use and single-story suburban buildings.

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